Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
Residential property sales fall 18.4% after stamp duty threshold change
Residential property sales in England and Wales fell 18.4% in the year to March 2026 compared with the previous year, according to data from the Office for National Statistics (ONS). The fall suggests stamp duty costs are acting as a barrier for buyers.
The ONS figures showed that sales dropped across every region following the stamp duty threshold change in April last year. The change left many buyers facing thousands of pounds more in upfront costs.
Stamp duty's influence on market activity
The data also shows how lower stamp duty costs can stimulate housing market activity. During the last stamp duty holiday in 2020-21, residential sales volumes stood at 726,832 in March 2020 and rose 4.7% to 761,154 in March 2021. Between March 2020 and December 2021, sales volumes rose by 33%.
Jonathan Stinton, head of intermediary relationships at Coventry for Intermediaries, said a near 20% drop in house sales shows how significant stamp duty has become in people's decisions about moving home. He noted that some people have decided to stay put rather than take on a higher upfront expense.
Stinton also pointed to the wider outlook: while the Bank of England held the base rate, further increases are still expected before the end of the year, adding to financial pressures on buyers at a time when affordability is already stretched.
Calls for a review of property taxation
Stinton said buyers need support and that a thorough review of the way property is taxed would be a good place to start. Any review, he suggested, should look at how to make moving home more affordable without creating higher costs elsewhere, arguing that a healthy housing market depends on people being able to move when they need to — whether for work, a growing family or the next stage of life.
What this means for agents and clerks
For letting agents and inventory clerks, the figures point to a market where fewer homeowners are choosing to move. Reduced sales activity can affect the flow of instructions, tenancy turnover and inventory work, as households that might otherwise have sold up instead stay in place. The expected further base rate increases and stretched affordability add to the pressures on buyers and movers alike.
Source: Mortgage Solutions